PayPal said Monday that it has applied for approval to form PayPal Bank, which would be able to offer loans to small businesses.
“Establishing PayPal Bank will strengthen our business and improve our efficiency, enabling us to better support small business growth and economic opportunities across the U.S.,” PayPal CEO Alex Chriss said in a statement.
The U.S. Federal Deposit Insurance Corporation will review an application proposing the establishment of PayPal Bank, along with Utah’s Department of Financial Institutions, PayPal said.
The company, which owns popular payment app Venmo, hopes to also offer interest-bearing savings accounts to its customers, the statement said. PayPal already makes credit lines available to consumers and has been trying to expand its roster of banking-like services as it competes with a growing number of fintech companies that are aiming to take business from traditional brick-and-mortar banks.